BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand
Corporate character and economic significance
Corporate character and economic significance Can the German SME sector be captured by a single definition?
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There are various definitions of small and medium-sized enterprises (SMEs). According to the EU, SMEs have up to 250 employees and an annual turnover not exceeding €50 million, and/or an annual balance sheet total not exceeding €43 million.
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At the same time, the defining qualitative features such as the company’s economic and legal independence and the combination of ownership, control and leadership are not taken into account.
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As the Institut für Mittelstandsforschung (IfM) Bonn shows, numerous companies that do not meet the criteria of the European SME definition still define themselves as Mittelstand. These are in particular the so-called mid-caps.
Share of self-defined Mittelstand companies is larger than the objective definition reveals Source: IfM Bonn (2015) 65.3
in percent
77.1 88.1
Micro 40.4 74.2
Small
79.8 56.5
Medium
96.0
Large
40.5 91.0
Definitorial Mittelstand: Up to two natural persons or their family members (directly or indirectly) hold at least 50% of the company's shares. In addition, these natural persons must be members of the management. Self-defined Mittelstand: The company is defined as Mittelstand by the management, independent of the company's ownership structure.
SME definition of the IfM Bonn Company size micro small medium (SMEs) together
6
Number of employees up to 9 10 – 49 50 – 499 up to 499
Turnover €/year up to 2 million up to 10 million up to 50 million up to 50 million
